China is world's second largest film market

China's box office sales hit 17.07 billion yuan (£1.7 billion) in 2012, marking a 30.18% year on year increase and making the country the world's second-largest film market.

According to data published by the State Administration of Radio, Film and Television (SARFT), Chinese filmmakers produced 893 films last year, including 745 feature films and 33 animated films. However, the market is being driven by foreign films, which were responsible for 52% of box office sales.

"Now, China is the world's third-largest film producer and second-biggest film market," said Tong Gang, head of the SARFT film bureau.

"Though the domestic movies' box office outcome was no match for that of imported movies, the 48.46% share still exceeds market expectations issued earlier this year following the signing of a new China-US film agreement," added Tong.

Under the agreement, the Chinese government increased the number of imported movies allowed in Chinese cinemas from 20 a year to 34.